RetireMentors

Financial Planning

Retirement advice from active retirees

Joseph F. Coughlin, PhD (coughlin@mit.edu) is Director of the Massachusetts Institute of
Technology AgeLab. His research addresses
how individuals, families, businesses and governments make decisions and plan
for the new future of old age. He was named one of Fast Company's "100 Most
Creative People in Business," The Wall Street Journal's "12 Pioneers Inventing
the Future of Retirement" and a featured "Game Changer" by Money Magazine.
Coughlin is a Behavioral Sciences Fellow of the Gerontological Society of
America and works with businesses and governments worldwide advising on
consumer-driven innovation and engagement. He has served on advisory boards for
British Telecom, Daimler, Fidelity Investments, Gallup-Healthways Well-Being
Index, Putnam Investments, Toyota, World Economic Forum and was appointed to the
White House Conference on Aging Advisory Committee. He produces the blog
Disruptive
Demographics and contributes to
Huffington Post
Science and
Bank Investment Consultant. Follow him on
Twitter @josephcoughlin.

Graduates of the Massachusetts Institute of Technology at a 2008 alumni event.

Retirement planning and advice is its own industry. Nearly all of the advice, for good reason, addresses financial security in older age. While money is important, what about the other “stuff” that makes up life tomorrow?

So far no one advisory firm or industry provides advice about actually living in retirement — just paying for it. As baseball icon and everyman philosopher Yogi Berra is credited with saying: "You can see a lot by just looking." A related axiom might be: You can hear a lot by listening.

At a Massachusetts Institute of Technology alumni event earlier this summer, I asked nearly 200 MIT graduates and spouses to give retirement-planning advice to the next generation.

I asked the audience to write down at least three pieces of advice they would give to younger people — what to do today to increase the chances of a better retirement tomorrow. While certainly not average in income or achievement, this august group of men and women averaged 79 years old.

The audience-turned-advisers happily jotted down their experience-based expert advice and often provided detailed justifications as to why they recommended a specific action. So what would a room of MIT alums and spouses, at least 15-plus years past traditional retirement age, give as retirement advice?

Especially among men, ensuring a financial foundation in older age is paramount. As one gentleman cautioned, "Save wisely, and don't outlive your money."

Financial-services advertising meant to engage people into active planning typically feature the early years of retirement shortly after 65, typified by relative health, wealth and activity. This group of near-80-year-olds highlighted that the retirement years are a marathon run, not a few short years’ sprint.

Retirement requires continuous preparation and maintenance for the decades ahead. It’s not fun and done.

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